On 1 September 2013, Adirondac Marine Supplies made a credit sale to one of its customers. The customer signed a 6- month bill for $1 500 at 10%. When the bill matured on 1 March 2014, the customer settled with the company in full. How much cash did Adirondac collect from the customer?

Question

Quizplus · Accepted Answer

The customer signed a 6-month bill for $1,500 at 10% interest. The interest for 6 months is $1,500 * 10% * (6/12) = $75. Therefore, the total amount collected is $1,500 + $75 = $1,575.

On 1 September 2013, Adirondac Marine Supplies Made a Credit